BOARD02310

• Board Meeting Date: 1/24/2006
• Description: CF Section - Construction Fund and Severance Tax Trust Fund Perpetual Base Account New Loans - Hope Ditch Company Weisner Subdivision - Well Replacement Project
• Board Meetings - Doc Type: Memo

Hope Ditch Company
January 24-25, 2005

Agenda Item 18a

i

Table 1 is a summary of the financial aspects of the project. A CWCB Loan of $153.000 would .
have an annual payment of $9,440 (including the 10% reserve requirement) at the loan terms of
3.75% for 30 years.

Table 1. Financial Summary

$170.000
21
23
$153,000
$9,440
$38
$40
$78
$34
$1452

Creditworthiness: HOC has no existing debt.

Table 2 shows the Financial Ratios and indicates overall average ability to repay the $153,000
CWCB loan, with the increased capital assessment.

Table 2. Financial Ratios

Financial Ratio Without With project
the project Future Years
rAver.2002-04) 2007+
Operating Ratio (revenue/expense)
weak: less than 100% 101% 156%
average: 100% -120% (aver.) (strong)
strona: Qreaterthan 120%
Debt Service Coverage Ratio
(revenues-expenses)/debt service 131%
weak: less than 100% N/A (strong)
average: 100% . 125%
strona: meater than 125%
Cash Reserves to Current Expense
weak: less than 50% 158% 25%
average: 50% - 100% (strong) (weak)
strona: meater than 100%
Debt per Tap (23 taps)
weak: greater than $5000 N/A $6,650
average: $2500 - $5000 (weak)
strona: less than $2500
Monthly Water Bill
average: $30 $30* $78
weak: greater than $60 (aver.) (weak)

*Rate is prior to December 2005, when the average monthly rate increased to $38. (The current
statewide monthly water bill average is approximately $35.)

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